One small financial step at a time

It’s been a long time since I’ve posted about our financial journey. In the past two years, we’ve been focusing on adoption. Let’s face it – adoption is expensive. But we haven’t given up on finding financial freedom!

A quick back story – my husband and I both made some really stupid financial decisions after turning 18. We both attended private college and paid for our tuition and living expenses with student loans. We both racked up credit card debt. I bought a brand new car. Both of us spent money with no regard to the future.

After we got married, we realized just how buried we were in debt and monthly payments. When we combined our finances, we discovered that we owed a whopping total of $95,856.02. I don’t know exactly how much we were paying every month, but I know it was at least $1,300. That was just to cover the minimum payments.

We were so frustrated, completely broke, and had no idea what to do in order to climb out of the hole we’d buried ourselves in. Thankfully, and I believe it’s a God thing, a coworker introduced us to Dave Ramsey’s financial principles. That was seven years ago. We put together a budget, cut all unnecessary expenses, and starting sending every extra penny to our debt.

We are not completely out of debt but we are so much closer. We have an emergency fund in place, no car payments, and no credit card debt. We’ve paid cash for one and a half adoptions, moved to Washington, and ended up with me as a full time homemaker after a job layoff. I’m not saying any of this to brag, just showing how we changed our financial lives.

Today we reached another small milestone. I love celebrating the milestones because it encourages me to keep making forward progress. After paying our student loans, we finally dropped below $30,000 owed. We are finally in the twenties instead of being in the thirties. I’m so excited! This month’s payment dropped my husband’s student loan below $10,000 so his debt is now four digit debt instead of five. And my biggest student loan is now under $15,000. We still have a long way to go but we’re climbing out one step at a time. I cannot wait until the day we can finally yell, “we’re free!!!!”

Once we get back from Taiwan, we get to make the next big financial decision. Do we attack the rest of the student loans so that we can get out of debt completely? Do we save up a down payment so that we can buy a house instead of wasting our money renting? Or do we see about starting another adoption so that we can bring home a second daughter? We are praying about it! I can’t wait to see which direction God points us.